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November 6, 2003 ~~C~IVED ~REGI®N ~ <br />Division of Minerals and Geology `~ NOV 1 4 2003 / ~` <br />Attn: Wallace H. Erickson ~~r <br />1313 Sherman Street, Room 215 Division of Minerals and Geolo®y <br />ECONOMIC DEVELOPMENT DISTRICT <br />Denver, CO 80203 , ~ OF SOUTHWEST COLORADO <br />RE: Clarification, AM-O5, Sunnyside Mine, DMG Permit No. M-1977-378 <br />Dear Mr. Erickson, <br />This is in response to the letter sent to Region 9 Economic Development District <br />of Southwest Colorado (Region 9 EDD) concerning comments by Mr. Todd C. <br />Hennis during the hearing that took place on September 23, 2003. Mr. Hennis <br />apparently_stated that, "Region 9 might be foreclosing on their loan with Mr. <br />Stephen C. Fearn, President of Gold King Mines Corporation." Your letter asks of <br />the status and relationship between Mr. Fearn and Region 9 EDD. <br />Region 9 EDD is anon-profit Economic Development organization serving SW <br />Colorado, including San Juan County. Region 9 EDD has made loans to Mr. <br />Fearns' company in order to put the mill in production for the reprocessing of old <br />mine and mill dumps which will help mitigate heavy metal contamination of <br />streams and rivers in San Juan County while providing new job opportunities For <br />the community. This project has been continuously working through regulatory <br />agencies requirements, as you are well aware. This has postponed the project and <br />created cost overruns that were not initially projected. Region 9 EDD is working <br />with Mr. Fearn and has not filed any foreclosure or legal action to collect the <br />loans. We support the project and will continue to work with Mr. Fearn to make <br />the project successful. Anthony Edwards, Director of San Juan 2000, personally <br />contacted Mr. Hennis concerning his erroneous statements. Mr. Hennis confirmed <br />to Anthony that no one from Region 9 EDD ever gave him any information and <br />that he received his information from another source but would not mention from <br />whom. Anthony has informed Mr. Hennis that it would not be in his or anyone <br />else's interest for him to continue discussing the relationship that Region 9 EDD <br />and Mr. Fearn have without confirming that information, with one of--the two <br />parties prior to making statements in a public hearing. <br />This hopefully clarifies the issue at hand, and should you have any more questions <br />or need additional information please feel free to contact me or Anthony Edwazds <br />at San Juan 2000. <br />Sincerely, <br />Ed Morlan, <br />Executive Director <br />cc: Anthony Edwards, Director San Juan 2000 <br />Stephen C. Fearn, President, Gold King Mines Corporation <br />SERVING THE COUNTIES OF: <br />ARCHULETA <br />DOLORES <br />LA PLATA <br />MONTEZUMA <br />SAN JUAN <br />SOUTHERN UTE <br />INDIAN TRIBE <br />UTE MOUNTAIN UTE <br />INDIAN TRIBE <br />ADMINISTRATIVE OFFICES: <br />295A Girard St. <br />Durango, CO 81303 <br />(970) 247-9621 PHONE <br />(970) 247-9513 FAX <br />e-mail: region9edd~trontier.net <br />hdp://www.scan.org/r9edd.html <br />